By John F. Copper
This three-volume paintings is the 1st complete examine of China's overseas reduction and funding international relations to track its evolution because the PRC's founding in 1949. quantity II presents an research of China's overseas reduction and funding to nations and local organisations in Asia from 1950 to the current day, studying international coverage objectives.
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Additional info for China’s Foreign Aid and Investment Diplomacy, Volume II: History and Practice in Asia, 1950-Present
296 In 1997 the Asian financial crisis gave China a nice opportunity to help Indonesia and win support from the government and the people while improving its image there and in neighboring countries. Indonesia’s financial sector was weak, in part precipitating the crisis there. The International Monetary Fund (IMF) came to the rescue, but its tight credit and higher interest rates policies precipitated bankruptcies and caused capital to flee the country, both of which created panic. It was estimated that in Indonesia bad debt rose from 9 percent to 50 percent and inflation looked to rise to 80 percent.
The Chinese involved in the project did not speak English; the Filipinos did not speak Chinese. Thus all talks needed interpreters. There were not enough engineers for the project and another loan had to be negotiated to resolve this matter. Because of other problems, including corruption, a negative image of the project, and an angry public, former president Gloria Macapagal-Arroyo chose not to activate the loan. When her successor, Benigno C. 8 billion, while Sinomach, the Chinese contractor, asked for even more money.
Indonesia was very grateful. 305 In 2010, the signing of the China-ASEAN Free Trade Agreement (CAFTA) hurt Indonesian exports to China so Beijing agreed to pursue trade balancing. 307 These two agreements put Indonesia on the list of the major beneficiaries of China’s financial help. China won acclaim and support from the Indonesia government and its population. The media reported that Indonesians, who for decades harbored suspicions toward China, were amazed by China’s economic development. 2 billion 34 ● China’s Foreign Aid and Investment Diplomacy, Volume II annually making China Indonesia’s number two trading partner.